In Washington, what is the minimum annualized earnings threshold for an employee of a Brueggers Bagels franchisee for a noncompetition covenant to be enforceable?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
ent Protection Act, Chapter 19.100 RCW will prevail.
- b. RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
- c. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is unenforceable against an employee of a Brueggers Bagels franchisee if the employee's annualized earnings from the party seeking enforcement do not exceed $100,000 per year. This threshold is subject to annual adjustments for inflation. This protection is codified in RCW 49.62.020.
This means that Brueggers Bagels franchisees in Washington cannot enforce non-compete agreements against employees who earn less than the annually adjusted $100,000 threshold. This limitation is designed to protect lower-earning employees from being unduly restricted in their future employment opportunities. Any provisions within the franchise agreement that conflict with this limitation are considered void and unenforceable in Washington.
For a prospective Brueggers Bagels franchisee in Washington, this information is crucial for understanding the limitations on non-competition agreements. Franchisees need to be aware that non-compete agreements are only enforceable against employees earning above a certain level. They should consult with legal counsel to ensure their employment agreements comply with Washington law and to understand the current, inflation-adjusted threshold. This also means that Brueggers Bagels franchisees operating in Washington may need to consider alternative methods for protecting their business interests, such as confidentiality agreements or other measures that do not run afoul of the state's non-competition laws.